Moscow, Russia – December 21, 2010 – “COMSTAR – United TeleSystems” JSC (“Comstar”) (LSE: CMST), the largest integrated telecommunications provider in Moscow and 83 Russian cities, with a presence in Ukraine and Armenia, today announces that Comstar-Regions, its wholly-owned subsidiary, has acquired 100% in Novosibirsk Multiservice Company LLC (“NMC”), a leading alternative operator in the Novosibirsk region, from a group of private investors for RUB 725 million (US$ 23.6 million[1]) including debt considerations.

The NMC group of companies provides cable TV, broadband Internet and fixed-line services in the Novosibirsk region under the CityHomeNet brand. The company is the leading cable TV operator in the region and is one of the top broadband providers. NMC’s network coverage is around 247,000 households that are all FTTB-based. The company currently has approximately 71,000 cable TV and 41,000 broadband Internet subscribers as well as 500 fixed-line corporate clients.

At the time of acquisition, NMC’s net debt stood at RUB 7.54 million (US$ 0.25 million). NMC’s financial results will be consolidated in the MTS Group’s financial statements beginning from December 20, 2010.

[1] Using the Russian Central Bank exchange rate of 30.7746 RUB/USD as of December 21, 2010. The U.S. dollar amounts in the press release provided for reference.